GF in Debt - Pay Day Loan Rip OFF

pandamonia

My GF has gotten herself in to some trouble with payday loans.

They have scammed her out of her £5000 savings by taking money from her but not paying off the debts in full so basically the 4200% Interest means she's more in debt than when she started.

I don't know why she did it but it makes no sense.

She paid them on her HSBC Debit Card and I'm looking into ways of clawing back her money and then dealing with the debts in a different way.

Does anyone know if i can claim chargebacks for the money paid as she payed them under duress and fear from people calling and in my opinion what they have done is legalised theft.

Also I'm looking at direct debit reversals to get her money back.

Does anyone know the best way to get the Debit card company (Mastercard) to action these so we can fight the debts the old fashioned way?

Thnks

Tixy

Have you checked the T&Cs to see what charges they will charge for late payments?
Have they provided you with a breakdown of the account to show what charges & interest they have added on since she defaulted?

Was the money taken out by debit card or direct debit (its usually by debit card and if so the DD guarantee won't be relevant), if its by debit card from her current account then its unlikely you will get the bank to agree to stop the payments or refund payments taken. Best thing is to open a new account elsewhere and close that bank account so they cannot take any more payments out.

custardy

why would you be getting a payday loan with £5K in the same account the money goes into?

DorsetGirl_2

Can you break down what happened a bit more? How much did she borrow? Did she miss payments or extend the loan?

Its hard to help without knowing a bit more info.

DorsetGirl_2

Also, if she had 5k in savings, why did she get a payday loan?

pandamonia

Sounds Stupid but its the truth, i think she was trying to keep her savings to one side while service her debts out of her salary.

But what happened was these payday loan things the interest ran up so quick it engulfed her into serious trouble within a few months it was thousands of pounds.

Im looking at chargebacks in the same way you chargeback a disputed credit card transaction. the card company is usually joint liable in the transaction and i believe they deceived her when they took the money off her.

Even if i only get some back its a success as we plan on DRO the money she owes to get out of this trouble

DorsetGirl_2

This is why payday loans should only ever be seen as a short term solution, not a long term one.

Did it not show her a breakdown of the APR?

pandamonia

I think it showed her what the interest was for the short term but what she failed to realise was when she missed the payment how fast it turned from a small loan to a large problem. the whole concept should be banned imo.

When she took out other loans to pay loans then she got in such a mess and then used all her savings to pay them off but it wasn't fully paid and so the saga carried on to the point she is now in bits

RAS

Read saltnvinegar's excelent thread on dealing with payday laons.

She needs a new basic bank account urgently and to get all her income removed from the old account. It must be with a bank that has no financial association with her old one.

If is is a debit card, then report the card stolen. That might stop them trying to claim the money and running up and OD on her old account.

pandamonia

RAS wrote: »

Read saltnvinegar's excelent thread on dealing with payday laons.

She needs a new basic bank account urgently and to get all her income removed from the old account. It must be with a bank that has no financial association with her old one.

If is is a debit card, then report the card stolen. That might stop them trying to claim the money and running up and OD on her old account.

Can you link the thread please? she really needs help

Tixy

Here Dealing with Payday Loan Companies